Thai Energy Ministry: Energy management reflects actual cost

[webfact]

Energy Ministry: Energy management reflects actual cost

BANGKOK, 3 June 2015 (NNT) – The Ministry of Energy’s power management strategy has been carried out in keep with the actual costs, while the use of coal as fuel will help reduce the electricity generation cost, says an official.

The Deputy Permanent-Secretary of Energy Ministry Twarath Sutabutr has revealed that the costs fuel used to produce electricity is on the fall, as shown from the continuous reduction of the electricity costs from May to August 2015. This demonstrates that lower fuel costs will bring the electricity cost down as well.

The reduction of the fuel cost by 0.0976 baht per unit has caused electricity cost to be lowered to 3.78 baht per unit for the May-August period of 2015 electricity price with production costs fixed at 2.90 baht.

The Deputy Permanent-Secretary of Energy Ministry has stressed that the ministry’s energy management strategy is related directly to the actual generation cost which comes from the use of lower priced fuels, such as coal from both domestic sources and imported sources.

He has denied the dispersed information on social media platforms claiming coal is an unclean source fuel that is unsuitable for electricity generation in the country. He said that the claim is inaccurate when compared to the facts.

He has said that the use of coal for energy generation must be accompanied by the advanced ‘clean coal technology’ to control all proceedings in keep with standards to prevent any negative environmental effects.

He has also ensured that the use of coal for energy generation in Thailand has been considered to help reduce the fuel cost and to control the electricity price in the long run.


-- NNT 2015-06-03

[Srikcir]

"the ministry’s energy management strategy is related directly to the actual generation cost which comes from the use of lower priced fuels"

The ministry wants to take credit for lower energy costs due to the drop in world energy oil and gas prices caused by US oversupply and weakened world economies. He is a true energy genius and credit to the Prayut regime. Will he then cancel the government contracts to buy solar power from newly Chinese built solar powerplants in Thailand at prices HIGHER than equivalent coal?

[rubl]

"the ministry’s energy management strategy is related directly to the actual generation cost which comes from the use of lower priced fuels"

The ministry wants to take credit for lower energy costs due to the drop in world energy oil and gas prices caused by US oversupply and weakened world economies. He is a true energy genius and credit to the Prayut regime. Will he then cancel the government contracts to buy solar power from newly Chinese built solar powerplants in Thailand at prices HIGHER than equivalent coal?

Ever heard of 'penalty clauses' in relation to contracts? Also having different power sources is a means to 'hedge' against price fluctuations.

Anyway, good the Ministry is at it and flexible.